Objective

The objective of this consumer behavior project was to figure out how to increase the market share of Reebok in the Indian Market? Reebok sports shoes and apparels is one of highly regarded brands in India. As of now it is the marketleader closely followed by its parent company brand Adidas. There are several attributes like comfort costeffective brand image on which Reebok scores highly but there are few other characteristics such as design! styling in which Reebok lags behind. The idea of this project is to understand which are attributes aremost important for the consumer while buying a sports shoes product. And also to identify on which of those attributes Reebok scores well and on which it is not so good. To understand which brand attribute has the highest impact on the overall "rand attitude#.To find out which sports shoe brand is preferred the most by the consumer$. To identify the major drivers behind choice of shoes for various needs demonstrated by thecustomer %price product &uality promotions style brand store environment etc'(.To identify the impact of demographic and psychographic characteristics of customers onchoice of sports shoes Research Methodology )ypotheses have been derived with the in*depth interviews +onsumer "ehavior theories and priorresearches that we have studied. The following have been studied in the process of obtaining reasonablehypotheses for the research. ,actors affecting +onsumer-s decision on buying shoes . +hitpan /anhasiri 0niversity of Thaichamber of +ommerce.#. 12ports marketing strategy3 A consumer b ehavior case analysis in +hina4 .Multinational "usinessReview 2pring5667 8eng 9i:hong "arbara "lakemore Andrus Ray."ased on our secondary research and in*depth interviews we found that the preferences buying intentionsvary significantly with age se; and income. Also according to the reference 5 mentioned above Incomelevels are one of the crucial factors which affect the purchase

behavior of sports shoes. <uring in*depthinterviews we found that youth segment is more inclined towards Reebok and preferences varied betweenmen and women working and non*working consumers. Also according to consumer behavior theories such as Maslow=s psychographic profile of a consumer significantly affects his purchasing behavior. RECOMMENDATIONS The cru; of the findings of the project showed that +omfort is the most important attribute one looks forwhile selecting a sports shoes. >hile ,riends are most influencing for one=s shoe purchase discounts arehighly preferred during purchase. And Reebok is considered to be the best priced among sports shoes but itis perceived to be low on style compared to other sports shoes.Reebok is strongly positioned in terms of "rand &uality and ?rice. 2till then it is most preferred by the )ighIncome segment group whose income is generally greater than @ lacs per annum. Retail outlets arepreferred to shopping malls. )ence more sales promotion activities should be run at retail outlets than inshopping malls. Reebok is highly perceived by the consumers as sports shoes so its association with the2port utilities must be maintained. The perception of Reebok as a stylish shoe is low when compared to itscompetitors. Reebok must concentrate its marketing efforts to change its image into a most stylish brand byco branding with fashion designers etc. Reebok is considered as the best priced in the market so it shouldcontinue to maintain this image by competitive pricing LIMITATIONS The Respondents collected are not heterogeneous. )ence results might be slightly biased. The Random sampling techni&ue is used in this project. Ather sampling techni&ues like 2tratifiedsampling could have been better. ,or many of the data analysis cases simple descriptive tests are used. 2ophisticated statistical testsmight reveal the results with most statistical significance. The &uestionnaire is not surveyed personally by the researchers. It=s self

*administered by the respondents themselves. )ence the results need not be most accurate.

INTRODUCTION:
Reebo I!ter!atio!al Li"ited A subsidiary of 8erman sportswear giant Adidas is a producer of athleticfootwear apparel and accessories. Reebok is an American*inspired global brand that creates and markets sports and lifestyle products built upon a strong heritage and authenticity in sports fitness and women=s categories. The brand is committed to designing products and marketing programs that reflect. The Indian footwear market generated total revenues of B$ @@C.D million in #EEC representing a compoundannual growth rate %+A8R' of 6.$F for the period spanning #EE(* #EEC. +lothing footwear sportswear andaccessories retailers proved the most lucrative distributors for the Indian footwear market in #EEC generating total revenues of B$ #6@.# million e&uivalent to 6#.7F of the marketGs overall value.The performance of the market is forecast to accelerate with an anticipated +A8R of 5E.#F for the five*yearperiod #EEC*#E5$ which is e;pected to drive the market to a value of B@ D65.( million by the end of #E5$ anincrease of 7#.DF since #EEC. The Rise of organi:ed retailing helped the footwear industry as well. Arganisedretailing chains helped the marketers to showcase their products properly and also target the premiumsegment customer who often visited these newly developed malls and multi brand retail stores. Recessionhad less impact on the Indian footwear market as the market was largely dependent on internalconsumption that remained robust.A lot of players announced plans to open their own retailing stores in #EEC. "ut the most populardistribution channels remained the multi branding stores and newly established retail malls. The whollyowned stores provide better margins to footwear makers and also helped them with their branding needs.International players especially preferred to go solo and open many new wholly owned distributionchannels.,ootwear industry was fragmented with many national and international players operating in a fast growingmarket but none having a

substantial market share. Though the demand for footwear is fast growing inIndia DEF*CEF of footwear units are still in the unorgani:ed sector. 2o to meet growing demand there is anurgent need to enhance the capabilities of organi:ed segment units. In the same endeavor centralgovernment during the 5Eth ?lan encouraged development of ,ootwear +omple;esH?arks

Reebo COM#AN$ #RO%ILE %oot&ear bra!d shares '(()*+'

%,t,re #ros-ects In the forecast period footwear is e;pected to outperform the growth witnessed in the previous reviewperiod. The growth in footwear industry in India will come due to increased incomes of urban young workersand professionals growth in organi:ed retailing and increased awareness of global fashion trends. Thefootwear market is also likely to benefit from the demand from rural and semi*urban India in the forecastperiod due to their economic empowerment. Ane of the biggest challenges for footwear in the forecastperiod is likely to be adaptability. As the market grows so people will demand newer designs better &ualityand increased distribution at shorter time cycles than before. 2ome of the leading footwear players likeAdidas ?uma and Iike are likely to channel a part of their purchase and production from +hina to India.

REE.O/ O0ER0IE1 Reebok has dominated the Indian sportswear market. >hile its major competitors Adidas %as"rand' and Iike have not been as successful in the Indian market Reebok ended #EE@ with totalsales e;ceeding B65 million. 2ales in #EE( were B@6 million. In contrast according to market sources Adidas India=s sales revenues are about B## million. ReebokGs main advantage has been that it understood the Indian consumer very well and has made an effort to grow alongside him.,or instance when the company came to India all that the consumers wanted was an internationalbrand of footwear and Reebok gave them that at an affordable price. Ane aspect to ReebokGssuccess has been its ubi&uitous retail chain. "y the end of #EE@ the company was retailing from5C# franchised stores. It also retails from two thousand multi*brand outlets.Reebok India commands a @5F market share in the premium sportswear industry. It plans toincrease the store count from the e;isting @EE to over 7EE before the ne;t financial year. Reebokreaches out to its target customers through its @EE e;clusive Reebok 2tores #EE 2hop in the shopoutlets ! #@EE dealer outlets. It offers different segments for both men and women like sports andfitness footwear apparel accessories fitness e&uipment and the lifestyle section. Taking retail to new heights Reebok=s new store offers the finest shopping ambience to customers with products displayed by categories such as-Running= ->alking= -Aerobics= -Tennis= -+ricket= and -9ifestyle= to help customers make better purchase decisions. Reebok started its operations in India in 566@.Reebok India has a pan* India presence with branch offices in Mumbai /olkata and "angalore andranks at the top amongst international footwear companies in India. The +ompanyGs brand vision isfulfilling potential its mission. Always challenge and lead through creativity. Reebok=s positioning is to celebrate individuality in sports and life

Data Collectio! Methods 2ample 2i:e As suggested by the objectives document the sample si:e will be kept in the range of 5@E. 2ampling ?lan32imple random sampling shall be used to collect data. "ut this will be within a set stratum of people. The people who An campus 2R2 using the Roll number list of ?8?5 and ?8?# %#@ samples from each year'. Aff campus3 2R2 in malls and markets. >e shall include people who are going to make purchasedecision regarding buying a shoe by visiting shoe shops multi* brand shoe outlets.>e will also include people who may have purchased shoes in the recent past to get an idea of postpurchase behavior. 2ampling ,rames3 5. @E people will be from the campus. 2o the sampling frame would include #. 2taff and family members in the campus $. 8raduates pursuing post graduation ?eople who may or may not have made a purchase decision in recent time (. Age group of #E*(@ Middle income to upper middle income backgrounds#. Around @E people will be from outside the campus. The sampling frame will mainly include people visiting malls. Aur focus will be on getting response from people who are making or going to make a purchase decision for shoe by collecting samples from shoe outlets Andalso focusing on people who may be wearing relatively newer shoes thus getting response from people who may have bought shoes in the recent past. )ence sampling frame will include following kinds of respondents3 ?eople who have already identified a need and are going to make a purchase decision for a shoe in the near future or have made in the recent past.

Data A!alysis: The survey data was analy:ed to check the validity of the above hypotheses. The analysis has lead to thefollowing results. +omfort is the most important attribute while selecting sports shoes<ata Analysis techni&ue used3 <escriptive statistics. 2?22 output summary3Interpretation3 ,rom the above descriptive statistics it can be inferred that comfort is the most important attribute onelooks for while selecting a sports shoe. Therefore our hypothesis is accepted. Reebok is considered to be the best priced among sports shoes<ata Techni&ue 0sed3 <escriptive 2tatistics 2?22 Autput 2ummary3 <escriptive 2tatistics for ?rice ?reference I Minimum Ma;imum Mean 2td. <eviation Reebok price5D# 5.EE @.EE $.7D(( 5.E766DIike price5D# 5.EE @.EE #.6$7E 5.5D@@#Adidas price5D# 5.EE @.EE $.5C7E 5.ED75C?ower price5D# 5.EE @.EE #.C6@$ 5.55C66Jalid I %list wise'5D# Interpretation. The Average Rating for the Reebok ?rice is high compared to the rest. )ence )ypothesis is accepted.

Reebok is perceived to be low on <esign %looks ! styling' compared to other sports shoe brands <ata Techni&ue 0sed3 <escriptive 2tatistics 2?22 Autput 2ummary3 <escriptive 2tatistics I Minimum Ma;imum Mean 2td. <eviationReebok style 5D# #.EE @.EE $.@(ED . 6ED5( Iike style 5D# #.EE @.EE (.5(@$ .C76D6 Adidas style 5D# 5.EE @.EE $.D67@ .6$7#E ?ower style 5D# 5.EE @.EE $.D7D( 5.5$E6E Jalid I %listwise' 5D#m Interpretation The Average Rating for the Reebok 2tyle is low compared to the rest. )ence )ypothesis is accepted Mean "rand Attitude of Reebok is highest among the brands in consideration<ata Analysis techni&ue used3 <escriptive statistics 2?22 output summary3 <escriptive 2tatisticsI Minimum Ma;imum Mean 2td. <eviationReebok 5D# 5.EE @.EE (.5$#@ .6C7C(Iike 5D# $.EE @.EE (.77#D .@#((@Adidas 5D# #.EE @.EE (.5CED .C5$7D ?ower 5D# 5.EE @.EE $.7C7D 5.E$$#(Jalid I %list wise' 5D# Interpretation3 As it can be seen from the output summary the descriptive statistics on the respondents group shows that Iike=s brand image is perceived to be highest compared to other shoe brands as the mean is highestcompared to other brands. This disproves our hypothesis that Reebok is perceived to be highest on overall"rand Attitude by consumers. "ut it can be seen that Reebok is perceived as a close $ rd ?osition Replacing old shoes is the most important stimulus for shoe purchase<ata Analysis techni&ue used3

Res-o!sibility State"e!t
To the best of our knowledge, and in accordance with the applicable reporting principles, the consolidated financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group, and the Group Management Report includes a fair review of the development and performance of the business and the position of the Group, together with a description of the principal opportunities and risks associated with the expected development of the Group. Herzogenaurach, ebruar! "#, $%""

REE.O/ STRATE2$
In #E5E the Reebok brand continued to e;ecute its strategy positioning itself as a premium sports and lifestyle brand focused on fitness and training. "ased on its roots and heritage in fitness Reebok has developed a roadmap for its key businesses going forward3 Awn >omen=s 2port +hallenge in Men=s 2port Revive +lassics. O&! 1o"e!3s S-ort a!d challe!ge i! Me!3s S-ort 0nlike many other brands Reebok is committed to making fitness aspirational and fun again K by providing consumers with e;periences products and the inspiration to be fit for life.>ith a holistic approach to 4itness Reebok provides consumers with proprietary technologies based on the three key elements of total 4itness3 strength conditioning and fle;ibility. Through a focused approach to these elements Reebok has developed three key product concepts3

Toning %launched in #EE6' LigTech %launched in #E5E' and Real,le; %to be launched in #E55'

These three product concepts are designed and will be commercialised across genders. STREN2T5: LE0ERA2IN2 LEADIN2 #OSITION IN TONIN2 In #EE6 Reebok launched the MasyTone footwear collection that is designed to help tone key leg muscles. MasyTone is based on Reebok=s proprietary 1Moving Air4 technology. It involves two balance pods under the heel and forefoot of the shoes that create natural instability with every step forcing the muscles to adapt.

"uilding on the success of MasyTone in #E5E Reebok e;panded its footwear offering into running with RunTone and training with TrainTone. REE.O/ RUNTONE

The brand also e;panded its toning reach with a new offering of lifestyle athletic and dress shoe models to capture additional consumer segments and distribution channels. To continue driving its position as one of the leaders in the toning category Reebok launched MasyTone apparel in the second half of #E5E therefore introducing the first head*to*toe toning story in the marketplace. MasyTone apparel includes stylish tops and bottoms which are designed to help tone key muscles as a part of a healthy fitness lifestyle. MasyTone apparel uses Reebok=s proprietary ResisTone bands which create resistance with every move. Reebok will evolve the toning platform for #E55 with the launch of the 1Tone while you live4 campaign. This campaign features inspirational MasyTone fans from around the world who fit fitness into their busy lives with MasyTone footwear and apparel.

Reebo Easy To!e

Co!ditio!i!g: s,ccess4,l "ar et la,!ch o4 6igTech In spring #E5E Reebok introduced its second innovative technology with LigTech an innovative running and training shoe concept for conditioning activities. LigTech not only created outstanding bu:: among consumers but also saw strong sell*through success for men women and kids at key accounts in key markets including the 02A Russia and /orea.

Reebo at a gla!ce About Reebok Throughout its history and again today Reebok=s success is based on its courage to challenge convention3 developing innovative products creating new markets and setting the latest athletic style. Inspired by its roots in fitness Reebok is a global sports brand that is committed to preparing consumers to be fit for life. +hallenge and lead the fitness world through creativity. Authentic empowering individualistic innovative courageous and real ,it for 9ife. )aving ,un 2taying in 2hape. An American*inspired global brand Training Running >alking "asketball +leated +ricket )ockey "ased on elements of total fitness %strength conditioning fle;ibility' Reebok=s focus is on three holistic footwear and apparel concepts3 Toning LigTech Real,le;.

"rand mission "rand values "rand attitude >orld presence ,ocus areas /ey strategic pillars

Reebok=s LigTech footwear utilises a uni&ue 1Lig*Lag4 geometry that delivers energy transfer back to a runner=s running stride. Its uni&ue sole propels the runner forward and is designed to help reduce muscle fatigue in shins. Reebok=s strategy is to e;pand the LigTech platform across categories in order to build ownership with this iconic geometric shape. ,or e;ample in Actober #E5E the brand launched LigTech "asketball in conjunction with >ashington >i:ards Rookie Nohn >all allowing Reebok to revive the basketball category. The brand also e;tended LigTech into /ids capturing this young and influential consumer in a highly relevant way. The LigTech girls and boys launch in the fourth &uarter of #E5E in the 02A was supported by an integrated 1ReeLig4 marketing campaign. In spring #E55 the ne;t category*specific evolution of LigTech for men and women will follow with the launch of LigTech Iano a lower*profile version of the original LigTech. +apitalising on the momentum generated by LigTech footwear Reebok takes the energy of LigTech from the feet up to the body with the launch of LigTech apparel for both men and women in #E55. LigTech apparel is made with special fibres called +elliant These fibres are made with a collection of natural minerals that help to increase o;ygen levels in the skin. The LigTech concept will be supported by an integrated global marketing campaign 1ReeLig K More Mnergy4 in #E55. The campaign features key assets from Reebok=s roster of athletes including Nohn >all 9ewis )amilton Ale;ander Avechkin and ?eyton Manning. It shows the athletes in training action with a visual language highlighting the uni&ue :ig*:ag shape.

Reebo

6igTech Na!o

%le7ibility: I!trod,ci!g Real%le7 In 2011, Reebok will introduce its third pillar, supporting flexibility and natural movement. Real lex is engineered with !" independent #sensors$ that help promote the natural movement of your feet. %hes e sensors are positioned to flex and move throughout the stride while providing protection under the feet. RealFlex provides Reebok with a uni&ue point of view in the fast' growing lightweight running and training category. (nd )ust like *ig%ech and %oning, Real lex represents a distinctive visual +,( as well as a highly relevant, functional consumer proposition. Reebok also demonstrates its commitment to this fitness and training area through the creation of innovative workout experiences such as its partnership with -ir&ue du .oleil and the roll'out of the /ukari training programme. In 2011, Reebok will expand its fitness footprint around the world through an innovative, back to basics grassroots movement.

Revive Classics Reebok +lassics leverages the fitness attitude and roots of the brand into the lifestyle segment. +lassics targets consumers who want to be -fit for the street= and value trend*right products that fit their mobile lifestyle. In #E5E the foundation and strategic direction of the +lassics business was further defined which has laid the groundwork for Reebok +lassics to re*emerge in #E55.The key product concept in #E55 is Reebok 9ite. This collection modernises Reebok=s +lassics offering by combining technologies. lightweight trend*right materials and Reebok=s proprietary

Reebo Classic Lite

The result is a range of products that provide supreme comfort technical details and a distinctive aesthetic appeal. This new product collection will be highlighted through an integrated global marketing campaign. >orld*renowned music

producer and newest member of the Reebok family 2wi:: "eat: will act as +reative <irector. The campaign will bring together music dance and the Reebok 9ite product collection which will announce to the world that Reebok +lassics is back. Reebok strategy and focus areas

Reebok key product concepts

A,ditor3s Re-ort >e have audited the consolidated financial statements prepared by adidas A8 )er:ogenaurach comprising the statement of financial position income statement statement of comprehensive income statement of changes in e&uity statement of cash flows and the notes together with the 8roup management report for the fiscal year Nanuary 5 to <ecember $5 #E5E. The preparation of the consolidated financial statements and the 8roup management report in accordance with I,R2 as adopted by the M0 and the additional re&uirements of 8erman commercial law pursuant to O $5@a %5' 8erman +ommercial +ode %)andelsgeset:buch K )8"' is the responsibility of the company=s M;ecutive "oard. Aur responsibility is to e;press an opinion on the consolidated financial statements and on the 8roup management report based on our audit. >e conducted our audit of the consolidated financial statements in accordance with O $5D )8" and 8erman generally accepted standards for the audit of financial statements promulgated by the Institut der >irtschaftsprPfer %Institute of ?ublic Auditors in 8ermany 1I<>4'. Those standards re&uire that we plan and perform the audit such that misstatements materially affecting the presentation of the net assets financial position and profit or loss in the consolidated financial statements in accordance with the applicable financial reporting framework and in the 8roup management report are detected with reasonable assurance. /nowledge of the business activities and the economic and legal environment of the 8roup and evaluations of possible misstatements are taken into account in the determination of audit procedures. The effectiveness of the accounting*related internal control system and the evidence supporting the disclosures in the consolidated financial statements and the 8roup management report are e;amined primarily on a test

basis within the framework of the audit. The audit includes assessing the annual financial statements of the entities included in consolidation the determination of entities to be included in consolidation the accounting and consolidation principles used and significant estimates made by management as well as evaluating the overall presentation of the consolidated financial statements and 8roup management report. >e believe that our audit provides a reasonable basis for our opinion. O,r a,dit has !ot led to a!y reservatio!s8 In our opinion based on the findings of our audit the consolidated financial statements comply with I,R2 as adopted by the M0 the additional re&uirements of 8erman commercial law pursuant to O $5@a %5' )8" and give a true and fair view of the net assets financial position and profit or loss of the 8roup in accordance with these re&uirements. The 8roup management report is consistent with the consolidated financial statements and as a whole provides a suitable view of the 8roup=s position and suitably presents the opportunities and risks of future development. ,rankfurt am Main ,ebruary 5@ #E55 /?M8 A8 >irtschaftsprPfungsgesellschaft %Ariginal 8erman version signed by3' Michael /o:ikowski >irtschaftsprPfer %8erman ?ublic Auditor' Achim >olper >irtschaftsprPfer %8erman ?ublic Auditor'

Co!solidated State"e!t o4 %i!a!cial #ositio! Adidas A8 +onsolidated 2tatement of ,inancial ?osition %I,R2' in millions Iote +ash and cash e&uivalents 2hort*term financial assets Accounts receivable Ather current financial assets Inventories Income ta; receivables Ather current assets Assets classified as held for sale Total c,rre!t assets ?roperty plant and e&uipment 8oodwill Trademarks Ather intangible assets 9ong*term financial assets Ather non*current financial assets <eferred ta; assets Ather non*current assets Total !o!*c,rre!t assets Total assets 2hort*term borrowings Accounts payable Ather current financial liabilities Income ta;es ( @ 7 D C $$ 6 5E 55 5# 5$ 5$ 5( 5@ $$ 57 <ec. $5 #E5# 5 5@7 #$$ 5 77D 56D # 556 D5 $6E (D 9:;;( C@@ 5 @$6 5 ((D 5(# 6$ @( @EC 5EE <:)=; +(:?+; #D$ 5 76( 5#$ #7@ <ec. $5 #E55 DD@ D@ 5 (#6 57E 5 (D5 C6 $7E 5#7 <:<;9 D#$ 5 (DC 5 $(# 57E 65 @C (5# 5#7 <:=>( ;:;)9 56C 5 577 5E5 56( +hange in F (6.# #E6.@ 57.7 ##.6 ((.5 %#E.$' C.# %7#.7' =+8+ 5C.$ (.5 D.C %55.#' #.( %7.@' #$.# %#E.$' )8> +>8? $D.C (@.$ #5.# $7.5

5D 5C $$

Ather current provisions +urrent accrued liabilities Ather current liabilities 9iabilities classified as held for sale Total c,rre!t liabilities 9ong*term borrowings Ather non*current financial liabilities ?ensions and similar obligations <eferred ta; liabilities Ather non*current provisions Ion*current accrued liabilities Ather non*current liabilities Total !o!*c,rre!t liabilities 2hare capital Reserves Retained earnings ShareholdersB eC,ity Ion*controlling interests Total eC,ity Total liabilities a!d eC,ity

56 #E #5 5E 5D ## #$ $$ 56 #E #(

(DE C(# #(5 E =:>(; 5 $$D 5@ 5CE (@5 #6 $6 $7 ':(;) #E6 @7$ $ C(( <:?+? D <:?'= +(:?+;

$#E 7#@ #$# E ':;=? 5 @76 #@ 5@D ($$ #6 ## #C ':'?= #E6 #5# $ $@E =:))+ @ =:))? ;:;)9

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#@ #7

Rounding differences may arise in percentages and totals. The accompanying Iotes are an integral part of these consolidated financial statements. Co!solidated I!co"e State"e!t E# adidas A8 +onsolidated Income 2tatement %I,R2'in millions Iote Iet sales +ost of sales 2ross -ro4it Rear ending Rear ending <ec. $5 #E5E <ec. $5 #EE6 $@ 55 66E 5E $C5 7 #7E @ 776 9:)=( <:)+' +hange 5@.@F 5E.(F '+8?D

%F of net sales' Royalty and commission income Ather operating income Ather operating e;penses %F of net sales' O-erati!g -ro4it %F of net sales' ,inancial income ,inancial e;penses I!co"e be4ore ta7es %F of net sales' Income ta;es %F of income before ta;es' Net i!co"e %F of net sales' Net i!co"e attrib,table to shareholders %F of net sales' Net i!co"e attrib,table to !o!*co!trolli!g i!terests "asic earnings per share %in S' <iluted earnings per share %in S'

(D.CF 5EE #6 55 5$ $ E 55E @ E(7 (#.5F ;>< D.@F #@ 55$ ;(? 7.DF #$C #6.@F 9?; (.DF 9?) (.DF + $( $( #.D5 #.D5

(@.(F C7 5EE ( $6E

#.(pp 57.5F 6.DF 5(.6F

$# $# $$

(#.$F %E.#pp' 9(; )?8(D (.6F #.7pp 56 #C.$F 576 %$$.@F' =9; +'98(D $.@F $.$pp 55$ 555.EF $5.@F %#.Epp' '<9 +=+8<D #.(F #.(pp '<9 +=+8+D #.(F #.(pp ( )><8)D 5.#@ 557.CF 5.## 5#5.CF

Rounding differences may arise in percentages and total. The accompanying Iotes are an integral part of these consolidated financial statements. Co!solidated State"e!t o4 Co"-rehe!sive I!co"e E$ Adidas A8 +onsolidated 2tatement of +omprehensive Income %I,R2' in millions

Iote

Net i!co"e a4ter ta7es Iet gainH%loss' on cash flow hedges net of ta; Actuarial loss of defined benefit plans %IA2 56' net of ta; Asset ceiling effect %IA2 56' net of ta; +urrency translation Other co"-rehe!sive i!co"e Total co"-rehe!sive i!co"e Attributable to shareholders of adidas A8 Attributable to non*controlling interests Rounding differences may arise in percentages and totals. #C #$ #$

Rear ending <ec. $5 #E5# 9?; $5 %5E' %E' $$5 =9' >'( 65C #

Rear ending <ec. $5 #E55 '<9 %5$#' %55' %5' %56' @+?=A ;' C# E

The accompanying Iotes are an integral part of these consolidated financial statements. Co!solidated State"e!t o4 Cash %lo&s E@Adidas A8 +onsolidated 2tatement of +ash ,lows %I,R2' in millions Iote Rear ending <ec. $5 #E5# CE7 55 5$ 5( $ E $# $# #6 $E #DE %D' %56' %#$' 55# @ %E' Rear ending <ec. $5 #E5E $@C #66 E 5@ %57' 5$C #$ @

O-erati!g activities: Income before ta;es Adjustments for3 <epreciation amortisation and impairment losses Reversals of impairment losses 0nrealised foreign e;change %gains'Hlosses net Interest income Interest e;pense 9osses on sale of property plant and e&uipment net Ather non*cash %income'He;penses

O-erati!g -ro4it be4ore &or i!g ca-ital cha!ges %Increase'H decrease in receivables and other assets %Increase'H decrease in inventories IncreaseH %decrease' in accounts payable and other liabilities Cash ge!erated 4ro" o-eratio!s be4ore i!terest a!d ta7es Interest paid Income ta;es paid Net cash ge!erated 4ro" o-erati!g activities I!vesti!g activities: ?urchase of trademarks and other intangible assets ?roceeds from sale of trademarks and other intangible assets ?urchase of property plant and e&uipment ?roceeds from sale of property plant and e&uipment Ac&uisition of further investments in subsidiaries Ac&uisition of subsidiaries and other business units net of cash ac&uired %?urchase of'Hproceeds from sale of short*term financial assets ?roceeds from saleH %purchase' of investments and other long*term assets Interest received Net cash ,sed i! i!vesti!g activities %i!a!ci!g activities: ?roceeds fromH %repayments of' long*term borrowings ?roceeds from issue of a Murobond <ividend paid to shareholders of adidas A8 <ividend paid to non* controlling interest shareholders M;ercised share options +ash repayments of short*term borrowings Net cash ,sed i! 4i!a!ci!g activities E44ect o4 e7cha!ge rates o! cash Iet increase of cash and cash e&uivalents +ash and cash e&uivalents at beginning of year

+:+<< %5EE' %@75' D@D +:'<( %555' %#$@' ;>< %(#' 5D %##D' 5 $ $ $7 Q Q %5(7' (( #$ @==(A $$ #@ E %D$' %E' Q %56C' @'=;A 99 $C5 DD@

;'' (7( 75D %$5#' +:9>+ %5$5' %#7#' +:+>; %(7' 5E %56@' 57 %5(' %C' 7E %5' 57 @+?'A %@EC' (6D %6D' Q E %(E(' @9+'A ) @$5 #((

Cash a!d cash eC,ivale!ts at year*e!d

+:+9?

))9

Rounding differences may arise in percentages and totals. The accompanying Iotes are an integral part of these consolidated financial statements.

Co!cl,sio!s A major weakness of Reebok is located in their top management. They lack top management depth and face high management turnover. This is attributed to the +MA ?aul ,ireman=s inability to delegate efficiently. /ey employees and top management were sometimes left out of the TloopT. Additionally the board of directors felt ,ireman=s salary was too high. In advertising Reebok had difficulty positioning itself. Reebok changed advertising agencies eight times and they earned a reputation as a difficult client. Reebok aimed to differentiate its shoe and apparel lines and hired 2ha&uille A=Ieal as a superstar endorser. Then Reebok changed advertising agencies and 2ha&=s new role was contradictory to the old. Reebok largest customer is ,ootlocker yet they established poor relations with them when they ignored their re&uest to manufacture a specialty line e;clusively for ,ootlocker. Reebok was a poor listener to ,ootlocker which has a good ear to consumer wants and needs. Re4ere!ces http3HHfinance.yahoo.com Reebok Annual Reports Reebok Uuarterly Reports Annual ranking of AmericaGs largest corporations www.reebok.com

www.bigcharts.com www.businessweek.com www.wikkipedia.org 2trategic Management +oncepts and +ases. ,red R. <avid 5Eth Md.